In this segment of the Motley Fool's "Ask a Fool" video series, analyst Blake Bos takes a question from a Motley Fool reader, who asks, "Is 3D Systems (NYSE: DDD ) a value investing choice?" While 3D Systems is one of the cheaper plays in the 3-D printing space, Blake cautions investors that the value investing approach may not be a good fit with the high valuations and wild volatility in the 3-D printing industry today. Blake then gives one strategy that investors who are interested in 3-D printing stocks can use to get into a position while still mitigating risk.
An investing strategy to double your money
The Economist compares this disruptive invention to the steam engine and the printing press. Business Insider says it's "the next trillion dollar industry." And everyone from BMW, to Nike, to the U.S. Air Force is already using it every day. Watch The Motley Fool's shocking video presentation today to discover the garage gadget that's putting an end to the Made In China era... and learn the investing strategy we've used to double our money on these three stocks. Click here to watch now!
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Report this Comment On November 13, 2013, at 8:23 PM, ScottAtlanta wrote:
lol....way to grind that axe.
Mr. Guzman....In his bias against investing in these stocks, Blake forgot to explain to you the most basic aspect of your question: the difference between a value stock and a growth stock.
That a Growth stock such as 3D often carries a price premium based on high expectations of future growth. That sometimes this is accurate and early buyers who assume the risk are richly rewarded, but that sometimes, it is not and the price falls, sometimes precipitously. We don't know what the case will be for 3D or other stocks in this space. Neither does Mr. Bos...tho he has been warning against valuations and typifying them as emotionally driven since at least $30/share at the beginning of this year.
He did note the possibility of "dollar cost averaging" as a way to hedge against "extreme" prices. Though, you've probably noted that so averse is he to investing in these stocks that he owns no shares and disagrees with Motley Fool co-founder bosses that 3D is a "best buy."
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